This is all because ownership remains a great differentiator. Generally, ownership entitles you not just to engage in some kind of lucrative activity. It also allows you to prevent others from doing it. Companies sue others for patent infringement or negotiate for ownership of software in commercial contracts because millions, potentially billions, of dollars are at stake.

How should companies react to this reality?

Embrace it. Recognize this value and work to maximize it. Invent, develop and patent using the best engineering talent you can find. Once you have intellectual property, protect, nurture and grow it. Negotiate hard when the topic of intellectual property comes up, because revenue and enterprise value are up for grabs.

By acknowledging that ownership of intellectual property remains a foundational issue in company valuations, companies set the philosophical groundwork for business practices that will help them win.

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About Me

Mr. Goldman is a legal, business development and human resources executive specializing in commercial contracts, securities/governance (public and private companies), mergers and acquisitions and management strategy. He has over 20 years of experience advising technology companies.